Hunt Taxidermy, Inc., is concerned about the taxes paid by the company in 2021. In addition to $14.1 million of taxable income, the firm received $1,555,000 of interest on state-issued bonds and $1,110,000 of dividends on common stock it owns in Oakdale Fashions, Inc. (Use corporate tax rate of 21 percent for your calculations.) Calculate Hunt Taxidermy’s tax liability. (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.) Calculate Hunt Taxidermy’s average tax rate. (Round your answer to 2 decimal places.) Calculate Hunt Taxidermy’s marginal tax rate.
Hunt Taxidermy, Inc., is concerned about the taxes paid by the company in 2021. In addition to $14.1 million of taxable income, the firm received $1,555,000 of interest on state-issued bonds and $1,110,000 of dividends on common stock it owns in Oakdale Fashions, Inc. (Use corporate tax rate of 21 percent for your calculations.)
Calculate Hunt Taxidermy’s tax liability. (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.)
Calculate Hunt Taxidermy’s average tax rate. (Round your answer to 2 decimal places.)
Calculate Hunt Taxidermy’s marginal tax rate.
Tax Liability: Tax liability is the amount of money you owe to tax authorities, such as your local, state, and federal governments (e.g., the IRS). When you have a tax liability, you have a legally binding debt to your creditor. Both individuals and businesses can have tax liabilities.
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